Understand the US minimum wage system 2025: updated values by region

The US minimum wage in 2025 remains a point of interest for Brazilians planning to work or move there. The structure of the American labor market differs significantly from Brazil’s: while Brazil maintains a single national minimum wage set by the government, the United States operates in a decentralized manner. The federal minimum has remained at US$ 7.25 per hour since 2009, but states, counties, and cities have the freedom to raise this amount according to their local economic realities.

How does hourly pay work in the United States

Unlike Brazil, the calculation of the US minimum wage is based on hours worked, not per month. A worker can earn between US$ 7.25 and US$ 17.50 per hour, depending solely on where they work. This results in significant variation in monthly income.

Based on a standard 40-hour week, the calculation is straightforward:

Weekly income: hourly rate × 40 = result

Monthly income (4 weeks): hourly rate × 160 = result

With the federal minimum, this amounts to US$ 1,160 per month. However, in regions like Washington D.C., where the minimum reaches US$ 17.50/hour, the monthly income reaches US$ 2,800.

What is the minimum wage in each state?

American states adopt different strategies. Some follow the federal (US$ 7.25/h), while others already exceed US$ 16/hour:

Highest minimum wages by state:

• Washington D.C.: US$ 17.50/h (highest in the country)
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York: US$ 15.50 to US$ 16.50/h (depending on the region)

States with lower values:

• Georgia and Wyoming: US$ 5.15/h (but the federal US$ 7.25 prevails in practice)

California also has a special rule for overtime: 1.5x for beyond 8 hours daily and 2x for beyond 12 hours.

Converting to reais: what does this represent?

Using an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

• Federal hourly minimum: US$ 7.25 ≈ R$ 37.70
• Federal monthly minimum: US$ 1,160 ≈ R$ 6,032
• Washington D.C. monthly: US$ 2,800 ≈ R$ 14,560

Comparison: US minimum wage versus Brazil

In nominal terms, the American amount converted to reais seems much higher than the Brazilian minimum of R$ 1,518. However, this simplistic comparison ignores crucial factors:

Real purchasing power: One dollar in the US buys fewer goods and services than its equivalent in reais in Brazil. American cities with high living costs quickly absorb the income.

Different structure: Brazil adopts a single, centralized national minimum. The US operates with a hybrid system, creating large disparities depending on the locality.

Cost of living: In the United States, basic expenses (housing, food, transportation) often exceed the entry-level worker’s income, especially in major metropolises.

Who qualifies for the minimum wage?

The minimum wage applies to:

• Workers aged 14 and older
• Employed under regular contracts
• Who are not apprentices or interns
• Without tips as the main component of their pay

Most common professions: restaurant and fast-food attendants, cashiers, stock clerks, cleaning aides, and supermarket workers.

Important note: Professionals who receive tips (like waiters) may earn a lower base salary, as tips supplement their income.

Is it possible to live on minimum wage in the United States?

In most cases, no. Even working 40 hours a week:

• Basic living expenses (without rent): US$ 1,185/month
• Average rent: US$ 1,626/month
• Total expected: US$ 2,811/month

The federal minimum wage of US$ 1,160 does not cover these essential expenses. Even in states with higher minimums like California or D.C., rents are among the highest in the country, balancing out the wage advantage.

Conclusion about the US minimum wage 2025

The American system remains decentralized and complex. While the federal minimum has been frozen for 16 years, states and cities continue to raise their values to keep up with inflation and local realities. For Brazilians interested in moving or working remotely for American companies, it is recommended to research not only the US minimum wage in your state of interest but also understand the specific cost of living in that region before making any decision.